ConocoPhillips (COP) Plans $1 Billion Cost Cuts in 2026

ConocoPhillips (NYSE:COP) is one of the 12 Best Oil and Gas Stocks to Buy Right Now. On February 5, Roth Capital increased its price target on ConocoPhillips (NYSE:COP) from $105 to $112 and maintained a Buy rating following the company’s Q4 results.

ConocoPhillips (NYSE:COP) issued unchanged 2026 capex guidance and stated that it continues to make progress on its $1 billion cost-cutting program. The company’s guidance for 2026 includes capital expenditures of around $12 billion and adjusted operating costs of $10.2 billion.

Also on February 5, Reuters reported that ConocoPhillips (NYSE:COP) missed Wall Street estimates for Q4 profit because of weaker crude prices. However, the company is aiming to cut capital and operating costs by $1 billion in 2026.

The company’s CEO, Ryan Lance, pointed out that the cost-reduction efforts build on more than $1 billion in run-rate synergies captured in 2025 after ConocoPhillips (NYSE:COP) acquired Marathon Oil for $22.5 billion. Lance highlighted that the company is “focused on driving a $1 billion reduction in our capital and costs in 2026” and plans to return 45% of its cash from operations to shareholders.

According to the report by Reuters, ConocoPhillips (NYSE:COP) announced in 2025 its plans to lower its workforce by 20% to 25% as part of a broader restructuring. RBC Capital Markets analyst Scott Hanold pointed out that investor concerns “still largely focus on timing of the significant free-cash-flow inflection and usage of the cash balance for shareholder returns.”

ConocoPhillips (NYSE:COP) is an American energy company that ranks among the world’s largest independent oil and gas exploration and production companies based on production and proved reserves.

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Disclosure: None. This article is originally published at Insider Monkey.